Ethereum Drops 10.40% Amid Whale Accumulation, $2,000 Support Tested

Ethereum's price has experienced a significant decline, dropping by 10.40% in the past week, bringing it close to the critical $2,000 support level. This downturn has raised concerns among investors, who are grappling with macroeconomic pressures and market-wide sell-offs that continue to weigh on assets.

While short-term traders are exiting their positions, large Ethereum whales have taken a different approach, accumulating 330,000 ETH in just 48 hours. This divergence between price action and whale behavior raises an important question: are we witnessing the start of a deeper correction, or is this a strategic accumulation phase before a potential rebound?

Ethereum’s recent price drop is reflected in key technical indicators signaling bearish momentum. The Relative Strength Index (RSI) sat at 38.06, nearing the oversold region, suggesting that selling pressure was dominant. However, a potential reversal could emerge if buyers step in. The Moving Average Convergence Divergence (MACD) indicator remained in negative territory, with the MACD line at -9.50 and the signal line below zero, reinforcing the ongoing bearish trend. Additionally, the On-Balance Volume (OBV) showed a slight decline, indicating reduced buying activity and weaker demand.

Ethereum must hold the $2,000 support level, as past data suggests that losing this zone could trigger cascading liquidations. However, if buyers capitalize on current whale accumulation, a recovery toward $2,200 could be possible.

Despite the significant price dip, on-chain data reveals that large holders have accumulated 330,000 ETH in the past 48 hours. There has been a sharp increase in balances held by wallets with 100,000+ ETH, indicating strategic buying by deep-pocketed investors. These major players could include institutions, long-term holders, or market makers positioning themselves ahead of potential price swings. The timing suggests that whales might be buying the dip, expecting a recovery, or hedging against further volatility.

Historically, such whale accumulation has preceded price rebounds, but with Ethereum hovering around the critical $2,000 level, the next move will depend on whether buying pressure sustains or broader market conditions force another leg downward.

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